The acquired speed of cryptocurrencies continues. Some countries are taking the necessary steps to discover a step forward in the new field that is being created.
Now El Salvador has made its own move. For a few hours now, it has been the first country to adopt a cryptocurrency nationally. The relevant bill was passed by the country’s Congress with 62-22 votes.
“The #Bitcoin bill has just been approved by a majority in the legislature. History!” Wrote President Nayib Boukele on Twitter after the vote.
Ahead of the vote, Boukele said the adoption of the cryptocurrency would bring “financial integration, investment, tourism, innovation and economic growth” to the country. The leader of El Salvador described bitcoin as “the fastest growing way to transfer billions of dollars in remittances and a way to avoid millions being lost to intermediaries.”
The purpose of the bill is to regulate bitcoin as a legal currency with liberating power and unlimited in any transaction, the bill states, according to the American network CNBC. Remittances from Salvadorians working abroad account for a large part of the economy – almost 22% of GDP. In 2020, remittances to the country amounted to $5.9 billion, according to official figures.
“This is a law that will put El Salvador at the centre of the world, we will become more attractive for foreign investment,” said Romeo Auerbach, a member of parliament from the Grand Alliance for National Unity, an ally of Boukele.
Bitcoin’s price jumped, a day after El Salvador passed the new law. Overnight, it was up 13% on a daily basis, exceeding $37.000, according to CoinDesk. On Thursday morning, however, the price is moving at 36.700 dollars.
It is recalled that the largest cryptocurrency in the world is still far from the historical high of 64.800 dollars that hit in April.